In the wake of the United Kingdom’s shocking vote to exit the European Union, fears that the country could enter a recession spread around the globe.
Continue Reading Below
David Malpass, an economist and senior economic advisor for Donald Trump, said he doesn’t think the U.K. will see a major economic downturn, and believes the vote is an indication people are tired of globalism.
“This is a big sign that globalism has exceeded its bounds,” Malpass told the FOX Business Network’s Stuart Varney. “Remember Obama and Christine Lagarde, the head of the IMF, had both basically campaigned. They’d gone to the U.K., said ‘don’t leave.’ That was the voice of globalism and that was rejected in the vote.”
Malpass said he is worried that the EU is in decline, doesn’t believe it is bad for the United States.
“What we want is a faster growing world and the EU bureaucracy has stood in the way of that,” he said. “It’s in the U.S.’s interest to have Europe growing a lot faster.”
He added he believes the outcome paves the way for better trade, and even more trade in Europe.
Many who supported the U.K.’s vote to exit the EU cited migration and regulation as major deciding factors. Across the pond in the U.S., Donald Trump, who supported the U.K.’s exit, also is focusing part of his financial plan on curbing government regulation to stimulate economic development.
“You have to have more effective regulation,” Malpass said. “We have this giant government overreach that has a chance to be rolled back. That’s what creates growth. You get lots more jobs, meaning millions and millions of more jobs, if you’ve got the federal government more within its own boundaries.”